The important issue of the Due Diligence of a property: what it consists of, what investigations it must include, and what advantages it offers for the purpose of a successful sale. The consultancy of Surveyor Alessandro Giulianelli, Great Estate technical partner.
WHAT IS A DUE DILIGENCE
During the purchase of a property, the practice linked to the preparation, by a qualified technician, of a preventive Due Diligence is becoming increasingly widespread.
It is a real investigation that allows you to verify, from every point of view, the regularity of the property, thus contributing, in the sale phase, to speed up the transaction times, having already collected all the useful information previously.
WHICH INVESTIGATIONS IT SHOULD INCLUDE
The Due Diligence aims to verify the compliance of the property under various aspects, with the aim of determining a general and exhaustive picture of the property for both parties.
In particular, the investigation will go to:
- check the cadastral regularity, verifying the exact insertion in the map, the correspondence of the plans to the real state and the information reported in the survey;
- ascertain the urban planning regularity of the property, comparing what was filed with the municipal offices with the real state of the same and evaluating the various constraints present on the property concerned;
- verify the structural and plant situation of the property, assessed on the basis of conformity and testing, ascertaining the effective correspondence of the real state.
RISKS AND BENEFITS FOR THE BUYER AND THE SELLER
The completeness of this investigation allows to have both a general framework of the property, which may be then integrated during the negotiations first phase, and, regarding the vendor, the tranquillity of being able to close the negotiation without any waste of time and/or money.
This certainty is decisive for the positive conclusion of the negotiation.
Indeed, in the majority of the cases, when the urbanistic and, more in general, the property compliance, is not clear, the risk is to face penalties or even the failure of the negotiation itself.
Moreover, talking about my last professional experiences, the non-creation of a Due Diligence before the signing of the preliminary contact causes several problems for the new owners too, especially in case of urbanistic discrepancies.
Indeed, this problems brought to an inevitable slowdown of the next phases of renovation and, in many cases, it determines the risk of legal proceedings against the vendors.